#TradeWarEases

#TradeWarEases

China’s inflation data points to soft consumer demand. In April, the Consumer Price Index (CPI) dipped 0.1% year-over-year, while the Producer Price Index (PPI) dropped 2.7%—the sharpest decline in six months. These figures reflect the continued impact of trade tensions with the U.S., which have dampened exports and factory output.

However, there’s a potential turning point. U.S. and Chinese officials report progress in trade negotiations, suggesting a deal could be on the horizon. If reached, it may ease tariffs and provide a boost to China’s economy. Holiday spending in May could also help lift inflation in the near term.

What Investors Should Know:

Weak inflation highlights sluggish demand in China.

A potential U.S.–China trade deal could support global markets.

Keep an eye on possible government stimulus and stronger May data.